Firms can only use one form of price discrimination
Indicate whether the statement is true or false
False. Firms often combine different forms of price discrimination in order to maximize profits. For example, a ski resort often uses peak-load pricing because skiing is more popular during the high season when the snow is better. It may also charge locals less than tourists for lift tickets. And it may also use group price discrimination, discriminating based on age.
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Assume the marginal propensity to consume is 0.8. If consumer spending increases by $20 billion, then real GDP will
A. decrease by $100 billion. B. increase by $16 billion. C. increase by $100 billion. D. not change.
It is very difficult for Gourmet Chocolatier to find inexpensive and available inputs for the business. Because of this, we predict that Gourmet Chocolatier's supply to be
A) inelastic. B) perfectly elastic. C) elastic. D) unit elastic. E) nonexistent.
Short run economic costs must be lower than long run economic costs because long run economic costs include the cost of inputs that are fixed in the short run (and thus are not part of short run cost).
Answer the following statement true (T) or false (F)
State and explain three [or some other number chosen by the instructor] reasons why the scope for further expansion of developing country commodity exports is likely to be limited
What will be an ideal response?